National Credit Regulator v HZ Finance (Pty) Ltd (NCT/158481/2020/57(1)) [2022] ZANCT 43 (12 July 2022)

National Credit Regulator v HZ Finance (Pty) Ltd (NCT/158481/2020/57(1)) [2022] ZANCT 43 (12 July 2022)

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its registration conditions by failing to conduct proper affordability assessments, failing to retain prescribed records, charging excessive fees, and engaging in reckless lending. The Respondent's answering affidavit did not provide convincing evidence to rebut the Applicant's allegations, and the Tribunal accepted the Applicant's evidence on a default basis. The Respondent's conduct was declared prohibited, and an administrative fine was imposed. The Tribunal also ordered the appointment of an independent auditor to identify and remedy affected consumers. The cancellation of the Respondent's...

Citation
[2022] ZANCT 43
Parties
Applicant: National Credit Regulator; Respondent: HZ Finance (Pty) Ltd
Court
National Consumer Tribunal
Jurisdiction
South Africa
Judgment Date
12 July 2022
Case Number
NCT/158481/2020/57(1)
Procedural Posture
Review Application / Default Judgment After Hearing; Respondent in Liquidation and Absent
Outcome
The application is granted. The Respondent is declared to have repeatedly contravened the National Credit Act and its registration conditions. An administrative fine is imposed and remedial orders are made.
Judges
B Dumisa, D Terblanche, A Potwana
Legal Topics
National Credit Act, Reckless Lending, Affordability Assessment, Administrative Fine, Credit Provider Registration
Banking and Finance Civil Procedure National Credit Act Reckless Lending Affordability Assessment Administrative Fine Credit Provider Registration

Case Brief

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Parties

National Credit Regulator

Applicant

HZ Finance (Pty) Ltd

Respondent

Procedural Posture

Review Application / Default Judgment After Hearing; Respondent in Liquidation and Absent

Legal Issues

  1. 1 Whether the Respondent repeatedly contravened the National Credit Act and its registration conditions as a credit provider.
  2. 2 What is the appropriate sanction for the Respondent's conduct, including administrative fines and remedial orders.

Ratio Decidendi

The Tribunal found that the Respondent repeatedly contravened the National Credit Act and its registration conditions by failing to conduct proper affordability assessments, failing to retain prescribed records, charging excessive fees, and engaging in reckless lending. The Respondent's answering affidavit did not provide convincing evidence to rebut the Applicant's allegations, and the Tribunal accepted the Applicant's evidence on a default basis. The Respondent's conduct was declared prohibited, and an administrative fine was imposed. The Tribunal also ordered the appointment of an independent auditor to identify and remedy affected consumers. The cancellation of the Respondent's...

Court Disposition

The application is granted. The Respondent is declared to have repeatedly contravened the National Credit Act and its registration conditions. An administrative fine is imposed and remedial orders are made.

Orders

  • The Respondent is declared to have repeatedly contravened specified sections of the National Credit Act and Regulations.
  • The Respondent's conduct is declared prohibited in terms of Section 150(a) of the Act.